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Message
I just came into some money.
Posted on 7/18/24 at 8:19 pm
Posted on 7/18/24 at 8:19 pm
I make an average salary and have managed to make it to my 30's with no debt. My grandfather passed and left myself and some siblings an inheritance. After tax I am looking at about 200k. I live an affordable lifestyle in an apartment and do not plan on any major purchases in the near future. Would it be an awful idea to put the entire amount in the S&P 500 ETF and not look at it for 10 years?
17
Posted on 7/18/24 at 8:28 pm to BassMaster318
quote:
Would it be an awful idea to put the entire amount in the S&P 500 ETF and not look at it for 10 years?
It would be an excellent idea. Very little downside - no risk of picking the wrong companies and if the entire S&P is a bad investment we're all screwed anyway.
Average return is 10% a year, so you can double in about 8.
Also means you don't have to put in the work to actively manage. I buy individual stocks and watch closely, but I have a degree in economics so I'm not flying blind.
Posted on 7/18/24 at 8:56 pm to BassMaster318
Posted on 7/18/24 at 9:03 pm to BassMaster318
quote:
Would it be an awful idea to put the entire amount in the S&P 500 ETF and not look at it for 10 years
Bubba; if you can do that and not look at it until about age 60 you’ll be rewarded.
Posted on 7/18/24 at 9:08 pm to BassMaster318
I’m in a few index funds with VOO being my largest holding. I don’t buy individual stocks anymore, the good ones are in funds anyway and you don’t have to constantly manage it.
Posted on 7/18/24 at 9:09 pm to BassMaster318
Sorry for the loss of your grandfather. Probably wouldn't be a bad idea to diversify in some way.
Posted on 7/18/24 at 10:14 pm to BassMaster318
Props to gpa for looking out. Hopefully you guys had a good relationship while he was alive.
Maybe take $5-10k and do something the two of you would have enjoyed together.
My grandfather was a modest man that was wiser than he was loud and saved his way to a great living. He met my grandmother in Italy while in the Navy and never left.
When I was a kid he would fly us all out to their little Sicilian village house and host us for 4-6 weeks. It made an lifelong impact on me.
If this were my grandpa, and I was left with that, the first thing I'm doing is dropping $10k to go back to Italy with my now kids and do what we used to do when I was one.
Then I'd put the rest in the S&P.
Maybe take $5-10k and do something the two of you would have enjoyed together.
My grandfather was a modest man that was wiser than he was loud and saved his way to a great living. He met my grandmother in Italy while in the Navy and never left.
When I was a kid he would fly us all out to their little Sicilian village house and host us for 4-6 weeks. It made an lifelong impact on me.
If this were my grandpa, and I was left with that, the first thing I'm doing is dropping $10k to go back to Italy with my now kids and do what we used to do when I was one.
Then I'd put the rest in the S&P.
This post was edited on 7/18/24 at 10:15 pm
Posted on 7/18/24 at 11:00 pm to LSUShock
Whatever you decide to invest in, consider making the investment over the course of a whole year, say 25% quarterly. This is called Dollar Cost Averaging and is a way to reduce risk. Of course, if the S&P flies high, you'll make less, but if we hit a rough spot, you'll do a little better.
Posted on 7/19/24 at 5:25 am to CharlesUFarley
Go all in on Crowdstrike and hope for a bounce
Posted on 7/19/24 at 6:36 am to CharlesUFarley
Lump sum beats DCA. DCA is supposed to be used for investing $ as you receive it. It might provide some psychological appeal to spread out the investments but mathematically best to just do all at once of you have the $ available.
Posted on 7/19/24 at 6:52 am to TorchtheFlyingTiger
VOO
Posted on 7/19/24 at 7:11 am to BassMaster318
I agree putting it in VOO or similar fund would be a great option.
You mentioned living in an apartment, are you renting? Using the money to purchase a house could also be a good investment too.
You mentioned living in an apartment, are you renting? Using the money to purchase a house could also be a good investment too.
This post was edited on 7/19/24 at 7:12 am
Posted on 7/19/24 at 8:48 am to TorchtheFlyingTiger
I actually agree with you, lump sum does beat DCA, usually. However, a lot about investing success is based on investor discipline. As you know, some investors will change their minds after a pullback. DCA might help with that.
That is why I used the word "consider" in my post.
That is why I used the word "consider" in my post.
Posted on 7/19/24 at 9:04 am to LSUShock
Agree with this. I spent a little of the inheritance I received from my mom on a pontoon boat that makes me think of her everytime we use it. Kept the rest invested. VOO is an excellent choice!
Consider what the gift could be for you one day. For discussion sake, it could double every 7 years (7-9 years is a reasonable possibility).
200k grows to 400k in 7.
400k grows to 800k in 14.
800k grows to 1.6m in 21.
Let your gpaw's gift can be the gift that keeps on giving!
Consider what the gift could be for you one day. For discussion sake, it could double every 7 years (7-9 years is a reasonable possibility).
200k grows to 400k in 7.
400k grows to 800k in 14.
800k grows to 1.6m in 21.
Let your gpaw's gift can be the gift that keeps on giving!
Posted on 7/19/24 at 9:08 am to BassMaster318
Good for you.
Honestly put it in an S&P 500 index fund. Maybe spend a few thousand on a vacation while your knees and back still work without hurting.
That kind of money invested when I was 30 would be almost life changing for me today.
Honestly put it in an S&P 500 index fund. Maybe spend a few thousand on a vacation while your knees and back still work without hurting.
That kind of money invested when I was 30 would be almost life changing for me today.
Posted on 7/19/24 at 9:42 am to BassMaster318
Good on you for no debt, as that would be my first plans for that money
If not planning on down payment for a home, agree with your plan.
However, I'd take 10-20k (5-10%) of that money and use it for something fun as you're making a great decision that many would not.
If not planning on down payment for a home, agree with your plan.
However, I'd take 10-20k (5-10%) of that money and use it for something fun as you're making a great decision that many would not.
Posted on 7/19/24 at 9:51 am to metallica81788
I agree with that. I assume that he was close to his grandfather. So yes, to honor his memory, it would be good to do something or go someplace that they once enjoyed together. Just take some time to reflect on what they meant to each other. Maybe donate some to a cause or organization that meant a lot to the grandfather. I’ve done those things from inheritances I’ve gotten from my uncles and mother and it’s helped ease the pain of loss… actually gives me some comfort that I’m honoring their memories.
Posted on 7/19/24 at 10:18 am to BassMaster318
As long as you don’t panic sell when the market goes through a rough period
Posted on 7/19/24 at 10:35 am to BassMaster318
I would suggest either buying a home or investing some in real estate. Lots of tax advantages to owning over renting. And appreciation of your property. You get none of that while renting.
Posted on 7/19/24 at 11:37 am to wiltznucs
quote:
Bubba; if you can do that and not look at it until about age 60 you’ll be rewarded.
Can you guarantee that?
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